Comment A nice idea, but pre-dates Gibson by 2 years (Score 1) 234
This is very similar to the Pico concept that Frank Stajano came up with a couple of years ago - though his is rather more complete than Steve Gibson's.
You can see Frank's (entertaining) talk from the 2011 Usenix security conference here:
https://www.usenix.org/conference/usenix-security-11/pico-no-more-passwords
There's a team at Cambridge University implementing this right now, and, like Gibson, Stajano has always pledged that it will be an open and patent-free standard.